On 1 June 2022, parent entity Forest Ltd sold inventory to subsidiary entity Wood Ltd for $80,000. The mark-up on sale was 25%. By 30 June 2020, 50% of the inventory had been sold to external customers for $90,000. What consolidation adjusting entries, if any, would be required on 30 June 2022 for this intra-group transaction? Group of answer choicesDr Retained Earnings $8,000; Cr COGS $8,000No consolidation entries are required as all the profit has become realizedDr Sales $90,000; Cr COGS $81,000; Cr Inventory $9,000Dr Sales $80,000; Cr COGS $72,000; Cr Inventory $8,000

During the current period, a subsidiary entity sold inventories to its parent entity at a profit of $6 000. The goods had originally cost the subsidiary $30 000. All the inventories were still on hand at the end of the year. The consolidation adjustment entry would include the following line item: Group of answer choicesCR Inventories $30 000CR Inventories $18 000CR Inventories $24 000CR Inventories $6 000

S Ltd acquired land from its parent company P Ltd for $1 000 000. The land had originally cost P Ltd $100 000 (assume a tax rate of 30%). Two years later S sold the land outside the group for $1 200 000, the consolidation journal entry required would be (ignoring tax effects):a.Dr. Opening Retained Earnings             $200 000                Cr. Gain on Sale                                        $200 000b.Dr. Opening Retained Earnings            $900 000                Cr.  Gain on Sale                                      $900,000c.Dr. Opening Retained Earnings            $1 100 000                Cr. Gain on Sale                                        $1 100 000d.no entry required

Which of following statements is not correct in relation to the consolidation process?Group of answer choicesTo avoid double counting of the group's equity, the equity of the subsidiary at the acquisition date needs to be eliminated from the records of the subsidiary.Subsequent to the acquisition date, any intragroup transactions within the group needs to be adjusted and eliminated.The fair value adjustments of assets that were not previously recorded by the subsidiary are recognised in the business combination valuation entries.Consolidated financial statements should offset the carrying amount of the parent's investment in the subsidiary.

During the 20X7 financial year, X Ltd sells inventory to its parent P Ltd for $90,000 representing a mark-up of 50% on cost. At 30 June 20X7, 3/4 of the goods are still held by P Ltd. The unrealised profit to be eliminated on consolidation is: a. $10,000 b. $22,500 c. $60,000 d. $30,000

A Ltd acquired 100% of B Ltd on 1 July 2020. At acquisition date, B Ltd had the following equity items. Retained Earnings Share Capital $90000 $130000 n the vear following the acauisition. B l td paid a bonus share dividend of $35000 out of pre-acauisition retained earningsDetermine the related consolidation adiustments on the consolidation worksheet for 30 June 2021?